Perform accounting and tax review in preparation for the Tax Reform Pilot

Ensure compliance, reduce risks, and identify opportunities through accounting and tax process review

 

By Marluci Azevedo

 

The Tax Reform is driving changes that will directly impact business management. As the transition period approaches, this is the ideal time to conduct a thorough accounting and tax review, ensuring that the business is prepared to operate safely and efficiently under the new model that will be implemented.

Through an in-depth diagnosis of accounting and tax structure, these tools help map the current stage of the company and identify what needs to be adjusted in these areas.

 

 

Accounting and Tax Review

These processes are interconnected and can be applied together for better results. After all, accounting and taxation integrate in many aspects.

The automated cross-checks by the tax authorities, already in practice for many years and becoming increasingly advanced, require fully aligned data.

In general terms, accounting review promotes the verification and correction of accounting records, involving the analysis of entries and financial statements, focusing on compliance with both Brazilian and international accounting standards.

Tax review, on the other hand, analyzes the fulfillment of main and ancillary tax obligations, covering federal, state, and municipal taxes, with an emphasis on risk prevention and opportunities for tax recovery.

Companies that neglect these reviews may present and accumulate inaccurate data, compromising credit decisions, investments, and even mergers and acquisitions processes.

By performing these assessments, it is possible to identify operational bottlenecks, failures in controls, and in the application of regulations. From there, the review also allows for the redesign of workflows, which will be very useful when implementing new tax practices.

 

Periodic Analysis as a Strategic Practice

Many companies adopt continuous reviews because they understand the positive results they bring. With this proactive approach, businesses discover opportunities, in compliance with legislation, for tax savings and financial efficiency.

Additionally, there is the aspect of adding reliability to the accounting reports presented to investors or to the head office abroad, with reviewed data, delivering the accuracy and transparency required by these stakeholders.

Periodic tax and accounting review is also a valuable practice for companies that have an internal accounting structure. Even with an efficient team, these reviews are essential for identifying inconsistencies, optimizing processes, and exploring possibilities for credit recovery or necessary adjustments to accounting balances and financial statements, for example.

 

Benefits of Accounting and Tax Review

Conducting a tax and accounting review brings benefits to the company, such as:

• Identification of Inconsistencies

Detecting failures in accounting balances, such as errors in the calculation of revenues, expenses, and taxes, helps avoid future problems and ensures compliance with fiscal and accounting standards.

• Utilization of Tax Credits

Identifying unused or incorrectly recorded credits can result in a significant financial recovery for the company.

• Reduction of Tax and Accounting Risks

Minimizing risks related to tax liabilities, penalties, or accounting errors, ensuring greater security and compliance in audit and inspection processes.

• Optimization of Internal Processes

Improving the efficiency of tax and accounting processes, allowing for more rigorous control of financial and tax flows, and making it easier to adapt to changes.

• Accounting and Tax Planning

Assisting in the creation of more efficient accounting and tax planning, aiming at the sustainability of the business and the best use of its resources.

 

One of the most advantageous aspects of conducting a tax review is precisely the identification of recoverable tax credits. Companies can identify overpaid or improperly paid amounts in the last five years, representing financial relief.    📰 Read more: Recovering unduly paid taxes via PER/DCOMP: rules and strategies.

 

Support for Adopting Best Practices

Domingues e Pinho Contadores brings together an experienced accounting and tax team with extensive knowledge in the application and interpretation of standards, as well as in providing comprehensive solutions in these areas. To operate in compliance with regulations and ensure reviews that support management, rely on DPC’s support: dpc@dpc.com.br.